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CIPS L4M5 Exam With Confidence Using Practice Dumps

Exam Code:
L4M5
Exam Name:
Commercial Negotiation
Vendor:
Questions:
317
Last Updated:
Jul 2, 2025
Exam Status:
Stable
CIPS L4M5

L4M5: CIPS Level 4 Diploma in Procurement and Supply Exam 2025 Study Guide Pdf and Test Engine

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Commercial Negotiation Questions and Answers

Question 1

Win-lose approach is most likely to be associated with which of the following type of relationship?

Options:

A.

Adversarial

B.

Partnership

C.

Strategic alliance

D.

Outsourcing

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Question 2

Cost and price analysis is very important for buyers when they are preparing for a negotiation with supplier. Which of the following is a benefit of knowing supplier's fixed costs?

Options:

A.

The buyer would be able to know the right volume to reach break-even point

B.

The buyer would be able to know the point at which the supplier would reject the offer

C.

With the sole understanding of supplier's fixed cost, the buyer would be able to know the volume at which supplier maximises their profit in short-run

D.

The buyer would be able to get a comprehensive picture of supplier's efficiency

Question 3

JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply

Options:

A.

Buyers purchase in small volumes

B.

Suppliers are more concentrated than buyer

C.

Eruption of epidemic in supply market

D.

JCB's switching costs are low

E.

These components are highly standardised